Pyramids Confused With Legitimate Direct Selling

Confusion Of Legitimate Direct Selling Companies With Pyramid Schemes

"the recent prosecution of the principals of the maximus pyramid scheme has created confusion in many areas between those companies which operate legitimate direct selling operations and those that are scams and pyramid schemes" said garth wyllie, executive director of the direct selling association (dsa) today.

"the direct selling association applauds the commerce commissions move to close down such schemes and cautions the public to check with the direct selling association for genuine direct sellers."

"members of the direct selling association are bound by a strict code of practice which prohibits involvement in any form of pyramid selling and to gain membership, sales plans are vetted by the industry to ensure they are do not breach the law" said mr wyllie

"unfortunately there are other schemes, presently operating in new zealand, which are, in the opinion of the direct selling association, likely to be pyramid schemes and for which the dsa has lodged formal complaints to the commerce commission.
It is of deep concern that these schemes appear to be able to run for considerable periods of time, before the commerce commission can act" said mr wyllie.

Garth wyllie suggests "that perhaps the commerce commission needs more resources and/or powers to close down such schemes earlier and prevent the public from getting caught by such scams."

The direct selling association maintains a web site at www.dsanz.co.nz which lists its members and is available by phone during business hours for the public to check whether a scheme is a legitimate direct seller on auckland 09-3670913

Garth wyllie points out, "the golden rule is, if its too good to be true, then it probably isn't true."

For further comment

Contact: garth wyllie
Executive director
Direct selling association of new zealand
Telephone: 09-3670913 business hours
Mobile: 021-649900 after hours

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